This one's for a Mumbaikar! - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

This one's for a Mumbaikar!

Jul 29, 2005

Thank God that no political establishment has, till now, blamed foreign intelligence agencies for the flood situation faced by the financial capital of India, Mumbai, since the past 3-4 days. Life stood standstill! Mumbaikars withstood, this time the onslaught of rains (and not bombs) as they made their way through to their homes after 24-36 hours of struggle. Even the equity markets (which remained open despite the heavy rains) seemed to cheer the spirit of the 'half underwater' man on the street. The quote, "Life must go on" was characterized to its best as Mumbai braved the 8th highest rainfall in India's history. This downpour, however, brought to forefront the loopholes (no, not drainage holes!) in the city's administrators' contingency planning systems and forecasting abilities of the Indian Meteorological Department, which again proved its abilities in predicting rains after they've already arrived! While there's no denying the fact that such a high level of rainfall was unprecedented, the dream of making Mumbai the next Shanghai has surely been shaken. Forget Shanghai, Mumbai, being India's financial capital, needs to become India's best city first in terms of infrastructure and quality public services. Shanghai is a long way ahead!

As for the stock markets are concerned, there's been nothing stopping them in creating new highs as days pass. While there are all reasons to believe that fundamentals do not justify such a momentum, how do you make believe the small investor who has 'given his all' to media reports justifying 'Buy' recommendations on stocks whose underlying companies have not performed well in the past and have serious management issues. What should a retail investor do if not give in to the 'strong' arguments that follow such recommendations? Here's a way out. Stop listening! Do not let a misguided step turn your investment venture into a speculative misadventure.

India is surely on a growth path. We understand that! But the path ahead will surely not be as benign as has been the case in the past two years. There are enough global (remember, we are a global economy now!) imbalances like the fragile US economy and interest rates, slowing China and currency adjustments, which might strike a strong negative chord anytime.

Investors, thus, have to be patient with their money. Mumbaikars can well teach others a lesson or two about this theory of maintaining discipline and balance of mind in times of uncertainty and crisis! Whatsay? Neck deep waters are navigable, but neck deep losses can sink you!

Equitymaster requests your view! Post a comment on "This one's for a Mumbaikar!". Click here!

  

More Views on News

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

ONGC to NMDC: Here are 5 Stocks Value Investors Should Closely Track (Views On News)

Nov 26, 2021

Before investing in value stocks, research the company and gain insight into why the market is discounting it.

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

Watch This Before You Buy NBFC Stocks (Fast Profits Daily)

Dec 3, 2021

My view on NBFC stocks.

Charlie Munger: This is "Even Crazier" than the Dotcom Era (Views On News)

Dec 3, 2021

Is the investing legend's pessimistic view on the stock markets justified?

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

MobiKwik IPO Opens for Subscription Soon. Key Things to Know Before Subscribing. (Views On News)

Nov 20, 2021

The Rs 19 bn issue is set to hit the market soon.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


Dec 3, 2021 (Close)

MARKET STATS